Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Craig Stevenson who wrote (18486)	10/11/1998 8:51:00 AM
From: KJ. Moy	Read Replies (2) \| Respond to of 29386

Craig, Thanks for a re-direct of focus<g>. We spent way too much time on what the RegDs were doing or will do. I think much of the volume were other speculators' doing, not the RegD's. It is the perception of that happening that can put lots of pressure on the stock price. I think you are right on about the 'InFrange' deal. Enterprise computing are often limited by scalability. Thus, more ports in the upcoming ESCON/FICON directors, the better the marketability. I believe FC switches are required in an end to end configuration with clusters of mainframes, rolls and rolls of storage devices. I'll add one more point. InFrange or McData can sell directly to companies who can use them. They don't need IBM being the middle man. The Netmark connection will come into play. Japan is one the biggest mainframe user countries. They can sell Hitachi SAN, InFrange and Ancor FC products directly to Japanese companies. KJ

To: Craig Stevenson who wrote (18486)	10/11/1998 6:15:00 PM
From: Nine_USA	Read Replies (1) \| Respond to of 29386

Craig, <<Although the stock price certainly affects us (investors) directly, I don't see how it has a material affect on Ancor's ability to stay in business>> What about the effect on employee loyalty, morale and incentives which had previously been based in good measure on options excercisable at 5 times current prices (or higher) and share purchases as well at far higher prices. This certainly seems like it would have a negative material impact on the firm's ability to perform well.

To: Craig Stevenson who wrote (18486)	10/12/1998 5:47:00 AM
From: Pigboy	Respond to of 29386

Craig, etc...all, Thanks for the posts re; Inrange thoughts. Reminds me of over 2 years ago when I went to a convention down in San Jose to find out more on Fibre Channel and no one had heard of it but these two guys at one booth, but they moved over the convo and talked on and on about ESCON. I had no idea what they were talking about. The mainframe IBM world is still a giant business. I would appreciate any others comments on the ESCON mainframe world and connection/needs for storage in enterprise or other... Speaking of those darn convertibles, again. I noticed this evening that a stock named Ross Systems just had an interesting announcement-- exchange2000.com I have followed Ross off and on for a few years and I think their management has made many boneheaded moves in the past, but this one looked interesting and perhaps pretty smart...I think their cash position is strong enough for it and business is decent (although the stock sits near its 52 wk lows). A poster on Yahoo, named, MaximizingValue yesterday had these comments about it... Thoughts/comparisons/vomit because of the lengthy discussions on this topic? << This is a good business decision by Ross. Earlier this year, Ross raised capital by issuing convertible preferred securities. In general, a convertible preferred is convertible into common stock at some modest discount/premium to the recent price of the Ross stock. If the stock price is low, this means that the exercising the conversion option will result in relatively more new shares being issued. Hence, Ross is saying that we believe that our stock price is too low and not reflective of its true value and therefore we do not want those convertible preferred holders to exercise their conversion rights, so Ross will exercise their rights to buy back the convertible preferred at a 8% premium to the issuance price. Implications are that the dilutive effect of conversion does not occur. That's good. Also, the capital that was previously raised, and presumably previously needed, is being consumed to execute the buy back. In summary, if Ross doesn't need this capital, shareholders interests are better served by avoiding this dilutive conversion at the current low Ross stock price. >>